The Quebec Ministry of Education Direct Consolidation Loan offers a payment option that lets you combine all your federal student loans into one loan.
The monthly savings from consolidation may be halfway down your loan payment, providing relief after receiving payment when you need it most. Benefits of Federal Loan Consolidation In addition to drastically reduce your monthly payments, consolidation can reduce debt to income ratio and improve your credit score.
Student loan consolidation can stretch the repayment period of the standard 10 to 30 years, depending on the amount of your student loans. The lower monthly payment means you have more money available to cover other expenses, including car payments, housing costs, and requirements related to the quarry.
Tuesday, December 7, 2010
Tax Credits For Banks That Give Student Loans - Philippine News
Banks that provide educational loans to eligible post-secondary students, particularly those from families that have yet to produce a single college graduate, must be granted lucrative tax benefits, according to a bill filed by Pasig City Representative Roman Romulo.
"Congress should enable a greater number of young Filipinos, especially those from hard-up families, to acquire a post-secondary education. A household with at least one college graduate can easily rise above the poverty threshold," Romulo said in a news release.
"Despite the large number of unemployed young professionals, partly due to the mismatch in their skills and the expertise required by industries, there is no question that college graduates have far greater opportunities to secure good-paying jobs here or abroad," Romulo pointed out.
Besides sustaining a household, Romulo said a college graduate who is gainfully employed could help finance a sibling's tertiary schooling, thus multiplying the family's ability to achieve a higher standard of living.
Eligible college students may obtain a loan under Romulo's proposed Act Establishing a Student Assistance Program by Banks and Government Financial Institutions. The loan would cover the tuition and miscellaneous fees of the school where the borrower has been admitted, plus expenses for books, food, transportation, and other requirements.
The funds would be disbursed in portions every semester. Subsequent releases would be withheld once the borrower has ceased to be enrolled, and would be automatically credited as loan prepayment.
The borrower would repay the loan periodically, starting not earlier than 2 years after graduation and ending not later than 8 years after leaving school.
The bank would charge an effective interest rate based on the prevailing 91-day Treasury bill rate, which stood at 3.956 percent per annum as of last week.
The lender may also impose an add-on annual interest rate of 3 to 5 percent. But instead of the student-borrower paying for the extra rate, it would be treated as tax credits that the lender may then use to pay for or offset future tax obligations.
The bill promotes preferential lending to eligible "priority" students, or those from families where no other immediate member is enrolled in, or has completed any post-secondary schooling.
Loans to "priority" students may have an add-on interest rate of up to 5 percent, convertible into tax credits. Advances to other non-priority students may carry an extra rate of only 3 percent, also convertible into tax credits.
To facilitate loan repayments, the bill requires the participation of the Social Security System (SSS) and the Government Service Insurance System (GSIS). Student-borrowers would be issued SSS or GSIS numbers, depending on their preferred future employment in the private sector, or in government.
The bank may engage the SSS or GSIS to collect repayments via their systems of salary deduction or withholding. It may also ask the Philippine Overseas Employment Administration to help collect from borrowers seeking work abroad.
"Congress should enable a greater number of young Filipinos, especially those from hard-up families, to acquire a post-secondary education. A household with at least one college graduate can easily rise above the poverty threshold," Romulo said in a news release.
"Despite the large number of unemployed young professionals, partly due to the mismatch in their skills and the expertise required by industries, there is no question that college graduates have far greater opportunities to secure good-paying jobs here or abroad," Romulo pointed out.
Besides sustaining a household, Romulo said a college graduate who is gainfully employed could help finance a sibling's tertiary schooling, thus multiplying the family's ability to achieve a higher standard of living.
Eligible college students may obtain a loan under Romulo's proposed Act Establishing a Student Assistance Program by Banks and Government Financial Institutions. The loan would cover the tuition and miscellaneous fees of the school where the borrower has been admitted, plus expenses for books, food, transportation, and other requirements.
The funds would be disbursed in portions every semester. Subsequent releases would be withheld once the borrower has ceased to be enrolled, and would be automatically credited as loan prepayment.
The borrower would repay the loan periodically, starting not earlier than 2 years after graduation and ending not later than 8 years after leaving school.
The bank would charge an effective interest rate based on the prevailing 91-day Treasury bill rate, which stood at 3.956 percent per annum as of last week.
The lender may also impose an add-on annual interest rate of 3 to 5 percent. But instead of the student-borrower paying for the extra rate, it would be treated as tax credits that the lender may then use to pay for or offset future tax obligations.
The bill promotes preferential lending to eligible "priority" students, or those from families where no other immediate member is enrolled in, or has completed any post-secondary schooling.
Loans to "priority" students may have an add-on interest rate of up to 5 percent, convertible into tax credits. Advances to other non-priority students may carry an extra rate of only 3 percent, also convertible into tax credits.
To facilitate loan repayments, the bill requires the participation of the Social Security System (SSS) and the Government Service Insurance System (GSIS). Student-borrowers would be issued SSS or GSIS numbers, depending on their preferred future employment in the private sector, or in government.
The bank may engage the SSS or GSIS to collect repayments via their systems of salary deduction or withholding. It may also ask the Philippine Overseas Employment Administration to help collect from borrowers seeking work abroad.
Ito Ang Pangako Ko - Nyoy Volante (Dropping Rain Tagalog - Perfect Match) [HQ] Download
Ito Ang Pangako Ko - Nyoy Volante (Dropping Rain Tagalog - Perfect Match)
For Cheap Student Loans, see posts below, this track is just to enjoy our fellow readers. This is just an enjoyment post and nothing related to the blog topic.
Monday, December 6, 2010
Government Student Loans - How to Apply
Student loans from the government
Student loans from the government are there to help with the costs of higher education.If you're an eligible, full-time student you’ll be able to take out two student loans for each year of your course: a Tuition Fee Loan to cover your fees in full, and a Maintenance Loan to help with your accommodation and other living costs.
How to apply
Apply for finance online
Apply now for 2010/11
Part-time students can apply using a paper form which is available to download from ‘Student finance forms and guides 2010/11’.
See ‘Student finance: how and when to apply’ for more details - including what to do if you change the course you're planning to study
Friday, November 5, 2010
Understanding Loan Consolidation
Thinking about consolidating your student loan debt? You have until June 30, 2006, before new interest rates kick in. However, if you are a new graduate, you'll want to weigh the pros and cons of consolidation loans fairly quickly. After graduation, you have a six-month grace period before the loan payments begin. By consolidating during the grace period, you save about one-half a percentage point. A summer 2005 graduate could lock in a 4.7 percent rate on Stafford loans, rather than the 5.3 percent rate that kicks in at the start of the repayment period.
The only drawback to consolidating during your grace period is you'll need to start making payments immediately. Not ready to give up those blissful, payment-free months? You could keep much of your grace period by waiting to consolidate until the last month of the grace period..
With a federal consolidation loan, your lender pays off the balances of all the loans you choose to consolidate and then issues you a new loan. Keep in mind though that once you consolidate your loans, there's no going back.
"Once you consolidate there is no way to un-consolidate," says Patricia Scherschel, vice president of loan consolidation at Sallie Mae. "Consolidation is a one-way street."
The interest rate on a consolidation loan is determined by taking the weighted average of interest rates on the federal education loans the student has and rounding up to the nearest one-eighth of a percentage point, capped at 8.25 percent. The final rate will differ from student to student.
Many borrowers sign on for a consolidation loan because they need more breathing room in their monthly budgets. A consolidation loan can lower a borrower's monthly loan payment by as much as 40 percent while stretching out the repayment period.
If your student loan payments add up to more than 8 percent of your gross monthly salary, you're a good candidate for a consolidation loan.
And you don't need multiple loans to enjoy the benefits of a consolidation loan. If your loan amount is high enough, typically $7,500 or more, you may be able to consolidate a single loan. Even though the initial interest rate on that loan won't change much, it will lock in these lower rates for the life of the loan.
Current Federal Stafford LOAN
Federal Stafford Loan
- Beginning July 1, 2010 all federal student loans (Stafford, PLUS and consolidation loans) are provided only by the US government through what is called the "Direct Loan Program."
- All lending from the bank-based Federal Family Education Loan Program (FFELP) will be transferred to the Direct Loan Program. Private banks will no longer lend government-backed loans to students.
- Every student applying for federal student loans will do so through their college or university (contact your Financial Aid office to learn how).
Overview
The U.S. Department of Education administers the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both the FFEL and Direct Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents and graduate students).Schools participate in either the FFEL or Direct Loan program but sometimes participate in both. Under the Direct Loan Program, the funds for your loan come directly from the federal government. Funds for your FFEL will come from a bank or other lender that participates in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat.
In order to apply for a Stafford loan, you must first complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to apply for all types of federal student aid and serves as your application for the Stafford loan program as well.
Borrowing
If your school is a Direct Loan school, your school will provide all the necessary instructions for you to obtain your Stafford loan. If your school is a "FFEL School", you will need to choose a lender for your loan. Note: Your school may present to you a list of lenders from which to choose your loan. However, you are free to choose any lender that participates in the FFEL program. The "Preferred Lender List" is simply provided to you as a convenience as hundreds of lenders offer Stafford loans. Be sure to research your options. While the terms and rates are set by the federal government, lenders will sometimes offer an incentive that can reduce the cost of borrowing.Once you have chosen a lender, you will also need to sign a promissory note. The promissory note is your legally binding agreement to repay your loan. Be sure to also read the "Borrower's Rights and Responsibilities" which should be part of the loan package. Your school will also conduct an "Entrance Interview" that you must complete in order to receive your loan proceeds. The Entrance Interview will be conducted in-person or online and is an informational session to ensure you understand your rights and responsibilities connected with borrowing a federal loan. The session will likely last no more than 20-30 minutes.
Your school will determine your eligibility for either a Subsidized and/or Unsubsidized Stafford loan. "Subsidized" means the government pays the interest on your loan while you are in school at least half-time and during periods of deferment. "Unsubsidized" means you are responsible for either making interest-only payments on your loan while you are in school or allowing the interest to be capitalized (allowing the interest to be added to your loan principal) while you are in school. Interest on Unsubsidized loans accrues daily.
Loan Limits
Stafford loans have fixed maximums based on your year in school. If you're a dependent undergraduate student, each year you can borrow up to (for the 2008-09 academic year):- $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year (no more than $3,500 of this amount may be in subsidized loans).
- $6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (no more than $4,500 of this amount may be in subsidized loans).
- $7,500 if you've completed two years of study and the remainder of your program is at least a full academic year (no more than $5,500 of this amount may be in subsidized loans).
- $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year (no more than $3,500 of this amount may be in subsidized loans).
- $10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (no more than $4,500 of this amount may be in subsidized loans).
- $12,500 if you've completed two years of study and the remainder of your program is at least a full academic year (no more than $5,500 of this amount may be in subsidized loans). This amount remains unchanged for both academic years.
You cannot borrow more than your cost of attendance (determined by your school) minus other financial aid including other loans. As a result, the amount you may borrow could be less than the maximums listed above.
Interest Rate
The interest rate on Stafford loans disbursed after July 1, 2006 is fixed at 6.8%. However, the interest rate on the subsidized portion as of July 1, 2009 is 5.60%. You may be charged fees up to 2%. However, some lenders and guaranty agencies pay this fee on your behalf. Still, you need to pay careful attention to ensure your lender offers this benefit.Repayment
You will not have to begin repayment of your Stafford loan until 6 months after you graduate, leave school or drop below half-time attendance.There are five different repayment plans available:
- Standard - even monthly payments over a ten year period.
- Extended - even monthly payment over a 12-30 year period depending upon the total amount you borrow.
- Graduated - payments start out low, and then increase in stages. You can generally take from 12 to 30 years to repay your loan. The length of your repayment period will depend on the total amount you owe when your loan goes into repayment. However, you will pay more in interest over the life of the loan than the standard repayment plan.
- Income Sensitive - monthly payment is based on your yearly income and your loan amount. As your income increases or decreases, so do your payments. Each payment must at least equal the interest accrued on the loan between scheduled payments, and no scheduled payment amount can be more than three times greater than any other scheduled payment amount. You may take from 12 to 30 years to repay your loan depending on the total amount you have borrowed.
- Income Contingent -- monthly payment plan only offered by the Direct Loan Program. Payments are based on a borrower's adjusted gross income (AGI), including any spousal income, family size, and loan amount. The monthly amount can change annually.
4 Ways to find CHEAP Student Loans!
The Wall Street collapse and the national recession have wiped out those cheap and easy $40,000 student loans that were advertised on late-night TV last year and have raised the real costs of many remaining education loans But the financial storms also have created a couple of surprising silver linings. Most students can still get enough reasonably priced loans to cover the bulk of tuition at local public universities. And some students and parents actually will get better deals than ever before. The government is cutting interest rates on the loans it makes to the neediest students, and lucky parents who still have good credit and lots of home equity are able to pull college cash out of their homes at record-low interest rates. What's more, a growing number of colleges are trying to fill the loan vacuum by offering students comparatively low-cost supplemental loans.
Finding bargain educational loans can take a little work, though, discovered Gary Krist, the father of a Bethesda, Md., high school senior. He was shocked when he saw the expensive loans packaged into his daughter's financial aid offers this spring. After fees, some federal parent loans, such as the ones Krist originally was offered, will cost more than 9 percent a year. "I was so trusting that they would give us a good deal. It was disillusioning," Krist says.
So he started shopping around for cheaper alternatives. Krist, who bought his home in the Washington suburbs long before the real estate bubble started, was able to get a home equity line of credit starting at about 4 percent. Since that interest will be tax deductible, his real cost will be even lower. Krist, an author who wrote a novel about financial bubbles, is betting economic troubles will keep interest rates and his payments low for months if not years. "Just because a loan offer comes with the imprimatur of the government or a respectable institution of higher education doesn't mean you can't get a better deal elsewhere," Krist says.
Of course, students are better off if they can pay for college without borrowing at all, perhaps by choosing lower-cost schools or raising lots of free grant and scholarship money, for example. But the harsh reality is that while underclassmen can attend community college for, typically, about $2,500 a year in tuition, upperclassmen typically have to pay an average of about $7,000 a year for tuition, plus an additional $1,000 for books. Living away from home typically adds $10,000 or so in housing, travel, and food expenses. And there simply isn't enough scholarship money to help every needy student. So loans are often the only way to pay for a degree.
Nevertheless, the payoff of college is typically high enough to warrant at least a few thousand dollars in debt each school year, experts say. And a few smart moves now can make those loans especially affordable.
So he started shopping around for cheaper alternatives. Krist, who bought his home in the Washington suburbs long before the real estate bubble started, was able to get a home equity line of credit starting at about 4 percent. Since that interest will be tax deductible, his real cost will be even lower. Krist, an author who wrote a novel about financial bubbles, is betting economic troubles will keep interest rates and his payments low for months if not years. "Just because a loan offer comes with the imprimatur of the government or a respectable institution of higher education doesn't mean you can't get a better deal elsewhere," Krist says.
Of course, students are better off if they can pay for college without borrowing at all, perhaps by choosing lower-cost schools or raising lots of free grant and scholarship money, for example. But the harsh reality is that while underclassmen can attend community college for, typically, about $2,500 a year in tuition, upperclassmen typically have to pay an average of about $7,000 a year for tuition, plus an additional $1,000 for books. Living away from home typically adds $10,000 or so in housing, travel, and food expenses. And there simply isn't enough scholarship money to help every needy student. So loans are often the only way to pay for a degree.
Nevertheless, the payoff of college is typically high enough to warrant at least a few thousand dollars in debt each school year, experts say. And a few smart moves now can make those loans especially affordable.
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